• The cooperative movement in India owes its origin to

agriculture and allied sectors.

• At the end of the 19th century, the problems of rural
indebtedness and the consequent conditions of farmers
created an environment for the chit funds and cooperative
societies.
•The experience gained in the working of cooperatives led to
the enactment of Cooperative Credit Societies Act, 1904.
•Under the Government of India Act, 1935, cooperatives were
treated as a provincial subject. The item "Cooperative
Societies" is a State Subject under entry No.32 of the State List
of the Constitution of India.
• In order to cover Cooperative Societies with membership
from more than one province, the Government of India
enacted the Multi-Unit Cooperative Societies Act, 1942.